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Legal Industry News

Gender pay gap 'preventing equal pensions'

The ongoing gender pay gap in the UK's employment sector is preventing women from enjoying the same level of financial security in retirement as men.

That is according to new research published by Scottish Widows, which revealed that while the number of females setting aside adequate amounts for their pension plan is on the rise, they are still only able to save around £700 less than males annually because of the disparity in wages.

On average, women now save 12.9 per cent of their income for the time after they finish work permanently - a figure some 0.3 per cent higher than that put away by the opposite sex.

However, the fact that men tend to earn around 20 per cent more than their female colleagues every year means these figures are not translated equally in terms of pension income.

Ian Naismith - head of pensions market development at Scottish Widows, a member of the Lloyds Banking Group - observed that lower pay will undoubtedly have a "knock-on effect" on women's ability to plan ahead financially.

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